tempo consulting tuan ngo | edward guzman | minh tam tran | phong vuong | oscar montecino
TRANSCRIPT
TEMPOCONSULTING
Tuan Ngo | Edward Guzman | Minh Tam Tran | Phong Vuong | Oscar Montecino
Porter’s 5 Forces
SWOT Analysis
Company Strategies
Recommendation
1
2
3
4
AGENDA
PORTER’S 5 FORCES
Neighborhood Market Industry
RIVALRY
Threats of New
Entrants
Bargaining Power of Buyers
Threats of Substitutes
Bargaining Power of Supplier
LOWPROFITABLE INDUSTRY
HIGH
HIGH
LOW TO MEDIUM
MEDIUM
MEDIUM TO HIGH
ANALYSIS1. Trader Joe’s faces Walmart, Target, Aldi’s and
others entering the market.2. Customers have more options to pick from
(Supermarket Industry)3. Substitutions is occurring between online
technology (Amazon)4. High variety of suppliers
SWOT Analysis Trader Joe’s Strength, Weakness, Opportunities, & Threats
Strength
Higher Sales Per Sq Ft vs. Competitors
Cost Leader
Good Motivated Employees
Popular with Media
Well Known Brand Name
Differentiated Private Label Products
Weakness
Weak Marketing
Poor Technology
Poor Store Layout/Infrastructure
Small Selection of Items
Small Target Base
Lack of Information for External Users
INTERNAL
Opportunities
Neighborhood Market Concept
Green Environment Trend
Increase in Demand for Diff. Products
Cult like Followers
Customer Service Trend
Threats
Large Retailers Gaining Market Share
Breach of Information
Testco and other Imitators
Growing Competition
Suppliers Gaining Power
EXTERNAL
ANALYSIS1. (SO) Ability to open stores at a low cost + cult like
followers = more profit and growth2. (ST) Use good press to increase market share and take
power away from imitators3. (WO) Solve layout problem to increase customer
service4. (WT) Solve technology problem to prevent competitors
from gaining market share
STRATEGIES Customers | Crewmembers | Company
CUSTOMERTarget Market •Majorities are “high educated, intelligent, & inquisitive” people
•Price sensitive individuals
Advert. •Word-of-Mouth•Fearless Flyer
Concern •Long-term: no guaranteed in customer loyalty (families)•Not one-stop store (not a lot of different items)
CREWMEMBERS
Trader Joe’s Employees
Wage
Benefits
Empowerment
Discount
Learning Opportunity
Promotion
1. Diverse individuals with high customer service
2. Endless opportunities 3. Open-minded hiring process4. Good pay & benefit 5. Employee loyalty
COMPANY1. Cost Efficient2. Good
Inventory Turnover
3. High Sales
RECOMMENDATIONS
Physical Infrastructure | Regional Research | Technology
PHYSICAL INFRASTRUCTURE
CONCERN
Current layout creates frustration among
potential customers
This encourages poor atmosphere &
experience
IMPLEMENTATION
Improve parking and store layout
The top 5 stores with the highest sales will be
chosen to remodel and make necessary changes
OUTCOME
Bring in new customers to help widen our sales
and customer base
Increase shopping experience and
satisfaction
REGIONAL RESEARCHCONCERN
Minimal selection of products at certain
location.
Causes no uniqueness to unique neighborhoods, something we pride on.
IMPLEMENTATION
Test new products at certain stores across the
country.
2 stores in each region will be chosen for the research per 1 year.
OUTCOME
Increase sales and bottom line for the
company
Create a close relationship with the
customers needs
TECHNOLOGY*CONCERN
The use of very old technology & program to
run store
Causes slow or missing records , & sluggish
speed at check-out lines
IMPLEMENTATION
Improve entire system with new and innovative
technology
10% of stores across the region within the 2 year
span with high traffic
OUTCOME
Better inventory tracking for future reference
High return on investment
Faster check-out for higher traffic
QUESTION?